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Hey Everyone it's Darren Copeland, Your Local Mortgage Expert.
We get the question almost everyday from clients about how much they can afford when looking
at a home purchase.
There's a guideline that we follow called your debt to income ratios which simply measures
how much you have coming in each month vs. how much is being paid in bills.
Your front end ratio measures your housing expense. Your back end ratio measures your
housing expense plus the rest of your expense added together.
Typically you don't want your front end ratio to be over 31%. For example....if someone
makes $3,000/month you don't want your monthly payment with taxes and insurance to be more
than $930.00.
Whether you're looking at FHA, VA, USDA, or Conventinal financing we're here to help and
happy to calculate the amount you can afford on your new home.
Thanks for watching this video and we look forward to working with you. Please call or
email with any questions